Louis Vuitton, a prestigious brand belonging to the renowned luxury conglomerate LVMH, has been strategically utilizing the concept of pop-up stores to attract a fresh demographic of customers, expanding beyond their traditional retail network. With the successful sales performance in the first quarter of the year, LVMH is set to launch approximately 100 pop-up stores in 2019, building upon the achievements of 80 pop-ups organized last year. During a recent conference call with analysts on April 11, the chief financial officer of LVMH emphasized the significance of pop-up stores in appealing to a diverse consumer base and enhancing brand engagement.
Jean-Jacques Guiony highlighted the pivotal role that pop-up stores play in introducing new product releases in a distinctive manner, reaching customers in different locations. These temporary retail setups provide flexibility and enable the brand to interact with consumers in innovative ways. For example, Louis Vuitton currently hosts a pop-up store in the atrium of Printemps, a renowned department store in Paris, showcasing its accessories until May 5. The brand also successfully launched a pop-up dedicated to sneakers in New York’s vibrant Soho district last year.
While specific financial details related to Louis Vuitton are not disclosed by LVMH, the fashion and leather goods division of the conglomerate, which includes iconic labels such as Dior Couture, Celine, and Fendi, reported a strong growth rate of 15 percent at the beginning of the year. This growth figure was on par with the previous year’s rate, exceeding the 11 percent growth forecasted by analysts. Despite facing a challenging comparison due to the impressive 16 percent sales increase from the previous year, LVMH’s exceptional quarterly performance was well-received by investors, driving the company’s shares to a record high of €346.75 on the Paris stock exchange. As of April 11, LVMH’s shares closed at €344.95, representing a notable 33.6 percent increase since the beginning of the year.
For more information on Louis Vuitton’s pop-up strategy, visit their official website here. To explore the latest financial updates from LVMH, you can visit their investor relations page here.
